| Thu 13 Sep 2007, 7:47 | | RCH - Richemont Securities AG - Trading Statement |
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RCH
RCH
RCH - Richemont Securities AG - Trading Statement
RICHEMONT SECURITIES AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
13 SEPTEMBER 2007
RICHEMONT ANNUAL GENERAL MEETING 2007
TRADING STATEMENT
The Annual General Meeting of Compagnie Financiere Richemont SA will be held
later today in Bellevue, Geneva, Switzerland.
At that meeting, shareholders are expected to approve the proposals of the Board
of Directors in terms of the approval of the financial statements and the
appropriation of retained earnings. An ordinary dividend of Euro 0.65 per
Richemont unit has been proposed, an increase of 8 per cent compared to the
prior year. In addition, a special dividend of Euro 0.60 per unit will be
payable, bringing the total dividend for the year to Euro 1.25 per unit. A
further press release will be issued immediately after the meeting to confirm
the decision.
At the meeting, Executive Chairman, Mr. Johann Rupert, will make the following
statement in respect of Richemont`s current trading performance:
"In July this year, we reported our trading results for the first three months
of the business year. For that quarter ended 30 June, sales overall increased by
9 per cent at actual exchange rates and by 15 per cent in underlying, local
currency terms when measured at constant exchange rates.
For the full five month period to end-August, sales have continued to show good
growth overall. Cumulative sales for the 5 months across all of our business
areas grew by 11 per cent at actual rates or 17 per cent at constant exchange
rates.
The strongest growth during the period continued to come from our specialist
watchmakers, where sales overall at actual exchange rates increased by 20 per
cent over the five-month period. Montblanc`s sales grew by 11 per cent, a very
good performance considering the positive impact of the centenary celebrations
in 2006. Our jewellery Maisons - Cartier and Van Cleef & Arpels - saw sales
increase by 8 per cent. The leather and accessories businesses were broadly in
line with last year, whilst Chloe reported sales growth of 12 per cent.
From a geographic perspective we have seen good growth in most of our markets.
Sales in Europe increased by 14 per cent, in the Americas by 6 per cent and in
Asia by 22 per cent, all at actual exchange rates. The weakness of the yen over
the period resulted in a decline of 4 per cent in sales in that market in euro
terms, although underlying sales in local currency terms grew by 7 per cent.
Richemont holds a portfolio of several of the most prestigious names in the
luxury goods industry including Cartier, Van Cleef & Arpels, Piaget, Vacheron
Constantin, Jaeger-LeCoultre, IWC, Alfred Dunhill and Montblanc. In addition to
its luxury goods interests, Richemont holds a significant investment in British
American Tobacco - one of the world`s leading tobacco groups.
www.richemont.com
The past month has seen turbulence in financial markets as access to easy money
has dried up for some market participants.
I am not sure that we are necessarily over the worst. However, I can assure you
that the Group`s cash resources are conservatively invested and Richemont has
not suffered any financial losses as a consequence of the unsettled market
conditions. Equally, we are seeking to minimize our exposure to any major
downturns in terms of markets and consumer confidence.
Richemont is fortunate that the luxury goods business, whilst not immune to
external disruption, has historically shown itself to be relatively resilient.
There are many opportunities for our businesses to grow, both in terms of the
expanding number of potential clients in established markets as well as new
markets which are opening up to luxury products.
Currently, my principal concern is the capacity of our Maisons - particularly
those in the watchmaking sector - to meet demand. We are addressing the whole
supply question, with plans for further expansion of our watchmaking capacity.
That will take some time to deliver, however.
Richemont owns businesses such as Cartier and Montblanc, which are leaders in
their fields and our watch businesses are at the pinnacle of the industry. We
are very well placed with a conservative balance sheet and no net debt.
I therefore have every confidence that, whatever may lie ahead in the short
term, Richemont will continue to prosper and grow over the long term."
For its financial year ended 31 March 2007, Richemont reported an increase in
sales of 12 per cent to Euro 4 827 million. Operating profit amounted to Euro
916 million, an increase of 24 per cent over the prior year.
Richemont`s interim results for the six-month period to 30 September 2007 will
be released on Friday, 16 November 2007.
Richemont owns a portfolio of leading international brands or `Maisons`, which
are managed independently of one another, recognising their individuality and
uniqueness. The businesses operate in five areas: Jewellery Maisons, being
Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of
Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine
Panerai and A. Lange & Sohne; Writing instrument Maisons - Montblanc and
Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel;
and Other businesses, which includes, specifically, Chloe as well as other
smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds a 19.2 per cent
interest in British American Tobacco.
Press inquiries: Mr Alan Grieve, Director of Corporate Affairs
Tel: + 41 22 721 3507
Analysts` inquiries: Ms Sophie Cagnard, Head of Investor Relations
Tel: + 33 1 5818 2597
Compagnie Financiere Richemont SA
50, Chemin de la Chenaie CH-1293 Bellevue - Geneva Switzerland
Telephone +41 (0)22 721 3500 Telefax +41 (0)22 721 3550 www.richemont.com
Date: 13/09/2007 07:47:59 Produced by the JSE SENS Department.
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